Many people are confused between multilevel marketing and pyramid scheme because both are following the strategies and systems similarly. When it comes to the functioning line of administration, it is also the same where several layers of distributors are recruited gradually. Despite the almost alike characteristics of these two business marketing fields, we need to know the fine line between them to make a clear judgement of it all. The one thing that you need to know before diving into the small details of differences amongst them is multilevel marketing is positively approved and legitimate to be involved in whereas a pyramid scheme is a totally illegal scam, originally built just to extract every cent from the so-called distributors.
Multilevel marketing, or in another name is called network marketing is people selling a real product to their target market. The primary objective of distributors working hard promoting their products is to let people know more widely about the things they are selling as well as recruiting members who are interested in the industry. They also aim to continuously grow their sales to enjoy more returns. For multilevel marketing, you should not assume it is a scam right away just because they require you to pay beforehand. As they sell usable products, you need to subscribe to the stuff and use it for yourself as a distributor. You need to know well about the products you will be selling and promoting to others. In order to obtain it, you need to pay for the starter kit commonly consisting of a variety of things you will find beneficial when you are finally doing the promotional campaigns. When you are a part of the distributors, you need to prepare your own strategy and build a website using the leading mlm software in Malaysia to gain more audiences.
However, totally different to multilevel marketing, a pyramid scheme is a disguised money-earning system posing as one of the MLM strategies. In a pyramid scheme, they do not provide any real products you need to sell. Using the name of multilevel marketing, they manage to get away by recruiting a bunch of new recruiters for their own good of increased commissions. When they get a lot of downline team under their names, they will acquire a lot of money for themselves. They use extreme lies when trying to convince others to join them which eventually work especially in Malaysia.
It is never wrong for you to be suspicious of something new that you do not have any knowledge of. If you are ever discovering yourself in a situation where you are pressured to be a part of them, the first you need to execute is to study the company’s background and track its record. Using the Internet, you can basically get anything you need at your fingertips. It is helpful if you manage to find the operational period of the company, the reviews from customers and its general reputations. This will be crucial to know whether people suggest the brand or warn you to stay away instead.